Olympian doing well in rehab, lawyer says

Olympic swimmer Scott Miller is doing well in rehab and may be close to securing a deal with prosecutors over drugs charges, his lawyer says.

The 1996 silver and bronze medallist was charged in July with supplying a prohibited drug of an indictable quantity after police allegedly discovered 7.75 grams of the drug ice during a search at Potts Point in Sydney.

Miller, in a suit and tie, fronted Sydney's Downing Centre Local Court on Tuesday, flanked by his girlfriend and a chaperone from his Melbourne rehabilitation centre.

His lawyer Greg Goold told the court there was no dispute that Miller was found with drugs but negotiations about the charges were underway with the Director of Public Prosecutions and police.

"Possession is not an issue and we're presently in the process of negotiating," he said.

"An offer was made, an offer came back ... we're not far off a resolution one way or the other."

Mr Goold told reporters outside court that the new year could bring a fresh start for the former sports hero.